Financial Flows

Examine the importance of loans, debt repayment, development aid, remittances, foreign direct investment and repatriation of profits in the transfer of capital between the developed core areas and the peripheries.

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Financial Flows

Examine the importance of loans, debt repayment, development aid, remittances, foreign direct investment and repatriation of profits in the transfer of capital between the developed core areas and the peripheries.

overview

Describe the trend in capital flows to the developing world between 2000 and 2014 (refer to data and years in your answer)

DEFINITIONS

debt (dɛt)

a sum of money that is owed or due.

capital

wealth in the form of money or other assets owned by a person or organisation or available for a purpose such as starting a company or investing.

remittancea sum of money sent in payment or as a gift.

loan

a sum of money that is expected to be paid back with interest."borrowers can take out a loan for £84,000"

repatriation of profits

the process of converting profits from one foreign currency into the currency of one's own country.

development aid

Development aid (also development assistance, technical assistance, international aid, overseas aid, official development assistance (ODA), or foreign aid) is financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries.

REMITTANCES

SWIFT INTERNATIONAL BANKING SYSTEM

Iranian banks stopped from using SWIFT system

repatriation of profits

Rüschlikon is a village in Switzerland with a very low tax rate and very wealthy residents. But it receives more tax revenue than it can use. This is largely thanks to one resident - Ivan Glasenberg, CEO of Glencore, whose copper mines in Zambia are not generating a large bounty tax revenue for the Zambians.

Zambia has the 3rd largest copper reserves in the world, but 60% of the population live on less than $1 a day and 80% are unemployed. Based on original research into public documents, the film describes the tax system employed by multinational companies in Africa.

LINK

Influencing the transfer of capital

Examine the influence of governments, world trading organizations and financial institutions (such as the World Trade Organization, International Monetary Fund and World Bank) in the transfer of capital.

Influencing the transfer of capital

Examine the influence of governments, world trading organizations and financial institutions (such as the World Trade Organization, International Monetary Fund and World Bank) in the transfer of capital.

examine

consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.

capital

wealth in the form of money or other assets owned by a person or organisation or available for a purpose such as starting a company or investing.

task

Create a 10 minute presentation examining the influence of one of the following in the transfer of capital:

General overview of the organisation including their principle objectives

Description of the functions of these organisations

Explanation of key terms

Praise and criticism

Map + explanation

Graph + explanation

Short video < 4 min

Resources

Governments: pp 66-68 HL Book

World Trading Organizations: pp 69-70 HL Book

Financial Institutions: pp 68 - 69 HL Book

WTO

Current disputes between states (2016)

IMF

world bank

tariffs

Customs duties (taxes) on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.

CAUSES AND EFFECTS IN MEXICO

CAUSES AND EFFECTS in THE USA

FURTHER READING

EXAM QUESTION

Explain the causes and effects of one major international labour flow. [10 marks]

mark scheme

The causes should encompass both push and pull factors and possibly also the enabling role of technology and transport networks (both providing means to move as well as spreading knowledge of opportunities), without which the migratory impulse may not be acted upon. Popular examples could include movement from Mexico to the US or movements internal to the EU, South Asians working in the Middle East, or Filipinos into Asia. Assess any example on its own merits but poorly chosen small-scale migration flows should be restricted to band C.

The effects depend upon the case study chosen. These might include economic/social impacts for host/source or the political reaction of natives/the media in the host country. More broadly, processes of cultural exchange and the growth of diaspora may be explored, possibly within the wider global context of migration contributing to growth of a “global village”/shrinking world. But do not expect all of these themes by any means to be necessary for full marks to be awarded: just two causes and two different types of effect could be sufficient to access the highest bands if the case study details are good.

To access Band E, both causes and effects should be addressed in a reasonably balanced way.

Information Flows

Explain the role of ICT in the growth of international outsourcing

Information Flows

Explain the role of ICT in the growth of international outsourcing

Definitions

Outsourcing describes when firms decide to buy products or services from external vendors, as opposed to making them in house.

Offshoring is defined by firm activities being geographically relocated from the firm’s domestic country to a lower-cost foreign country.

Supply chain - the sequence of processes involved in the production and distribution of a commodity.

OUTSOURCING to bangalore, india

TASK: Describe the types of activities and services being performed in Bangalore.